A former Nebraska bank executive has been sentenced to three years in federal prison for his role in a $4.3 million bank fraud scheme tied to the construction of a car wash.
The Department of Justice (DOJ) says Aaron Luneke, the former chief financial officer of Bank of the Valley, was sentenced on July 13th after being convicted of bank fraud and attempted bank fraud.
A jury convicted Luneke in March.
Prosecutors say Luneke defrauded Bank of the Valley, where he once served as CFO, and attempted to defraud Stearns Bank in St. Cloud, Minnesota.
The case centered on loans connected to the construction and operation of Legacy Express Car Wash in Columbus, Nebraska.
Authorities say Luneke used fraudulent and inflated invoices to obtain construction loan funds for the project.
At sentencing, U.S. District Judge Brian C. Buescher found that Luneke abused his position as CFO to carry out the scheme and help conceal it.
The judge said Luneke’s role at the bank “significantly facilitated the commission and concealment of the fraud against the victim bank.”
Prosecutors say Luneke used fake and inflated contract invoices between February 2021 and June 2021 to obtain or attempt to obtain loans from the two banks.
In the Bank of the Valley scheme, authorities say Luneke submitted fraudulent invoices to secure additional construction funding, eventually receiving two loans totaling about $4.32 million.
The jury also found that Luneke tried to defraud Stearns Bank in a related refinancing scheme.
Prosecutors say Luneke used fraudulent invoices to inflate the value of the car wash property in an attempt to obtain a $3.5 million refinancing loan.
Authorities also say Luneke used shell companies to help hide the fraud and failed to disclose significant personal debts owed to family members in connection with his Stearns Bank loan application.
The DOJ says there is no parole in the federal system.
After serving his 36-month prison term, Luneke will be placed on supervised release for five years. He was also ordered to pay a $10,000 fine.
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